Joint research from 1st-party customer data specialists Edit, and digital transformation consultancy Kin +
2000 respondents split equally between the
E-commerce scored particularly poorly, with only 6% of consumers claiming loyalty to brands within that vertical. As the lowest scoring online segment, e-commerce brand loyalty was below that of finance (9%) and offline retail - food and drink (21.5%).
Outside of e-commerce, loyalty towards financial products increased with age and, unsurprisingly, with those who have an income of £75,000 plus, with over 20% of respondents in this income bracket claiming loyalty to brands within the sector.
In a digital-first customer journey, rewards are most likely to drive the sharing of personal data across demographics. 43% of respondents suggested 'a discount code or incentive' would persuade them to sign up to brand communications.
A quarter (25%) would like 'exclusive products or first opportunity to purchase', Gen Z consumers saw "exclusivity" as particularly appealing, with nearly a third (30%) interested in 'first opportunity to purchase'.
While rewards were seen as an appropriate trade off for sharing personal information, more pragmatic considerations still remain the most important consideration to younger audiences. Operational and customer service communications outweighed rewards as a 'return factor' for younger generations. 34% of Gen Z respondents, and 32% of Millennials said that they would be 'deter[ed] from making another purchase if [they] cannot contact customer services via [their] preferred method'.
McGowan continues: "Brands cannot rely on loyalty anymore. Brand affinity through emotional connection has weakened to be replaced by habitual ties based on lived and related experience with brands and retailers.
"Brands therefore need to ensure that they look at the individual customer, and how they interact with the business to understand their behaviours and encourage habitual purchasing. Consequently, brands should be looking at the customer journey as a whole, as well as spotting opportunities to innovate through data. Do it right, and there is an opportunity to retain more customers, as well as bringing in new ones".
Karl Hampson Chief Technology Officer Data & AI at Kin+Carta concludes "Our research shows that brands must not confuse repeat purchasing with "loyalty". Instead, they should balance repeat transactional activity with how engaged the customer is across all interactions.
"Data will be key to this holistic measure, but equally brands must invest in the capabilities to understand the human behind the data. This means making data more accessible, insights easier to unlock and bringing your customer experience and data teams closer together so a shared understanding and strategy can be achieved."
The full report, developed alongside Censuswide, can be downloaded here:
https://edit.co.uk/customer-journey-research-report/
ENDS
Notes to Editors
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About Edit
Edit delivers integrated data solutions, acquisition, and retention campaigns for some of the world's most recognised brands. Obsessed with delivering attributable growth for clients, Edit's mission is "to turn data into profit" via combining technology, strategy, and insight.
Headquartered out of
www.edit.co.uk
About Kin +
Kin +
Our 1,700 strategists, engineers and creatives around the world bring the connective power of technology, data and experience to the world's most influential companies, helping them to accelerate their digital roadmap, rapidly innovate, modernise their systems, enable their teams and optimise for continued growth.
As a
For more information, please visit www.kinandcarta.com.
About Edit
Edit deliver integrated data solutions, acquisition, and retention campaigns for some of the world's most recognised brands.
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